What Is Private Mortgage Insurance?
Who PMI protects
Private mortgage insurance protects the lender against certain losses if you default; it does not protect your ability to stay in the home. It may be required on conventional loans with a small down payment.
Cost depends on equity, credit and the insurance structure. It may be paid monthly, upfront or through lender-paid pricing. The calculator uses an editable approximation, not an insurer quote.
Compare cash and payment
A larger down payment may reduce or avoid PMI, but using all your savings creates its own risk. Compare monthly savings with the cash you would give up and keep an emergency reserve.
Include principal, interest, property taxes, homeowners insurance and any HOA charges alongside PMI. A payment shown without these items is not the full housing budget.
Ask the servicer about cancellation
Many eligible conventional mortgages have borrower-requested cancellation and automatic termination provisions under federal law. Payment history, original value and loan conditions can affect the process.
Ask for the applicable written requirements. A new valuation or seasoning period may be required under some rules. FHA mortgage insurance is not conventional PMI and follows separate program provisions.